Health insurance's share in the non-life segment is set to surpass other categories put together as the sector continues to expand, reported Times of India.
At present, health is the largest segment with a 40% share of total non-life premium.
Niva Bupa Health Insurance managing director and CEO Krishnan Ramachandran said the industry is growing at 14-15% with a major potential for further expansion.
“Unlike motor insurance, the second largest segment, which depends on new vehicle sales, health insurance has vast scope due to its low penetration. Globally, five of the top 10 insurers by market capitalisation operate in health insurance,” he said.
He also said insurance regulator Irdai’s decision to allow 10% hike in senior citizen premiums can be implemented while maintaining a combined ratio of 95%.
The combined ratio represents the proportion of claims and management expenses to total premiums. The total premium income of the non-life industry was INR 2.89tn ($33bn) in FY2024.
“Health insurance in India remains affordable. A family can secure coverage for around 2% of the sum insured, which is reasonable” he said.